Another UP Week in Silver

Nothing like a $2 reversal in silver to chase the trolls away…

Really impressive day today. Our predefined support levels held in the panic of the post-earthquake selloff. Both PMs then stormed higher on…ahem…headlines dismissing the notion that QE3 was being put on hold.
(sigh)
(double sigh)

Let’s start with silver. That it bounced off of $34 was just what the doctor ordered. Then, the way it charged back through $35.50 was HUGE. It then ran into some light resistance at $36. There’s a big surprise, huh? Either way, the chart has been cleaned up nicely and silver now looks poised to move higher early next week. Let’s see what happens at 36.75. You can bet your booty that The Cartel would LOVE to paint a double top onto the chart. Alas, that’s a topic for another day (probably Tuesday). For now, just bask in the glory of this chart. Let its radiance fill you with glad tidings all weekend.

Gold rebounded about $20 or so before running into the resistance you can clearly see at about $1423. Don’t be surprised to see a Monday pullback to 1417-18 before we break back through that resistance level and charge back toward 1435. Again, like silver, The EE will have an opportunity to paint the tape next week. With gold, it would be a H&S. To me, it would be meaningless, just as the supposed H&S from late last year was meaningless. However, every douchebag chartreader this side of Joe Granville will be rolled onto CNBS to proclaim the latest gold rally “dead and buried” if a H&S does get painted.

Crude has recovered, too, to stand at about $101. I’d say that we did get a “sell the news” event today as the first “Day of Rage” fizzled in Saudi due to heavy policia presence. Let’s see what happens next Friday and the Friday after that and the Friday after that…

I’m glad that everyone has survived this crazy week of wars and earthquakes. Not sure what plagues, famines and locusts will do to PM trading next week but I guess we’ll find out…
TF

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